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Microlesson · 5-min read

Due Date for Issue of Invoice - Goods [Section 31]

# Due Date for Issue of Invoice – Goods [Section 31]

The due date of invoice is one limb of the ToS test for goods (FCM). Knowing the due date in each scenario is mandatory.

## Scenarios & Due Dates

ScenarioDue Date of Invoice
(A) Movement of goods involved (by supplier or recipient)Before or at the time of removal of goods
(B) Movement NOT involved (e.g., installation contracts, goods made available on-site)Before or at the time of making goods available to recipient
(C) Continuous supply of goods (gas through pipeline, etc.)Before or at the time of: issuance of periodical statement OR receipt of periodical payment (whichever is the actual trigger date — due date is not relevant here)
(D) Sale on approval or return basisEarlier of: time of approval / supply, OR 6 months from removal
(E) Recipient liable to self-invoice under RCM (supplier unregistered)Within 30 days of receipt of such supply of goods

Worked example

### Example 1

Ex – Goods sold with site installation

C Ltd. sold a machine to be installed at site. Consideration of ₹15 lakhs received on 10 Apr. Machine assembled at site on 15 Apr; invoice issued 18 Apr.

→ Movement of goods + on-site installation = Goods made available rule (B).

→ Due date of invoice = 15 Apr.

→ ToS = Earlier of [Invoice 18 Apr / Due date 15 Apr] = 15 Apr.

⚠️ Common exam mistakes

  • Using 'removal' date for installation contracts where goods are not movable until assembled — Scenario (B) applies, not (A).
  • For approval-basis sales, forgetting the 6-month outer cap from removal date.
  • For continuous supply of goods, using calendar concepts instead of the actual event (statement/payment) date.
Reference: Section 31(1) and 31(4) read with Rule 47 — CGST Act, 2017
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